The Economic managers of President Rodrigo Duterte have recommended for the government to make an early announcement on the temporary suspension of the second tranche of the fuel excise taxes under the Tax Reform for Acceleration and Inclusion (TRAIN) law.
Under TRAIN law, also known as Republic Act No. 10963, in 2019, a Php 2 increase will be implemented to the Php 2.50 excise tax for per liter of diesel, and the Php 7.00 excise tax for per liter of gasoline, which were imposed starting 2018.
According to Finance Assistant Secretary Antonio ‘Tony’ Lambino, an early announcement of the suspension could reduce the inflationary pressure and better the situation for Filipinos.
“Idinadagdag ng economic managers ang kanilang suporta sa pagsuspinde ng second tranche ng oil excise upang maangkla ang inflation expectations at paigtingin ang mga aksiyon ng gobyerno laban sa hoarding at profiteering,” Lambino said during a press conference in Malacanang on Tuesday, October 16.
The Finance assistant secretary mentioned that the TRAIN law has a provision regarding suspending the increase in the fuel excise tax if the price of crude oil averages from US$ 80 from October to December.
Lambino stressed that there is only a ‘slim chance’ that the oil prices will not reach the said threshold based on the analysis of the Department of Finance and the Department of Energy in the current and future market.
“Malinaw sa presyo ngayon at sa futures market na napakaliit ng posibilidad na hindi tayo lalagpas sa threshold na ito, at ito ang basehan ng suporta para sa agarang anunsiyo ng gobyerno,”
Lambino also said that they are just waiting for Malacanang to make an official announcement to suspend the increase in fuel excise tax.
Lambino predicts that the government will lose Php 40 billion revenue collection due to suspending the Php 2 additional excise tax to diesel and gasoline
During the opening of the TienDA Malasakit Store in Taguig City on Sunday, October 15, Special Assistant to the President Christopher ‘Bong’ Go announced that the President has signed an order to suspend the second tranche of fuel excise taxes.
However, no order has yet to be released.